LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session May 16, 1997 TO: Honorable Rodney Ellis, Chair IN RE: House Bill No. 820, As Engrossed Committee on Jurisprudence By: Cuellar Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB820 ( Relating to civil actions to recover fraudulent Medicaid claims.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB820-As Engrossed No significant fiscal implication to the State is anticipated. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. The bill would implement Texas Performance Review Recommendation FR 8 in Disturbing the Peace: The Challenge of Change in Texas Government. The bill would amend Chapter 36 of the Texas Human Resources Code, the Medicaid Fraud Prevention Act, which prohibits fraudulent conduct with regard to the Texas Medicaid program. A private party would be allowed to bring suit on behalf of the State of Texas for violations of Chapter 36. The person filing the private lawsuit would be required to serve a copy of the petition on the State of Texas, and within the next 60 days the Attorney General may investigate the allegations and intervene and proceed with the action or decline to take over the action. The bill would also allow the Attorney General to bring a federal action as a relator under 31 U.S.C. Section 3730. Because the Attorney General would have discretion to bring these lawsuits and could seek investigative assistance from HHSC, the Attorney General estimates that any increased workload could be absorbed with existing resources. The Comptroller estimates that there will be some savings to the State as a result of implementing the provisions of the bill but cannot estimate the amount of any savings. No significant fiscal implication to units of local government is anticipated. Source: Agencies: 529 Health and Human Services Commission 302 Office of the Attorney General 304 Comptroller of Public Accounts LBB Staff: JK ,BB